Ed Giles and Susan Regas have never been happler than during the past four months since they have been seeing each other. Giles is a 35-year-old CPA and a partner in the medium-sized accounting firm of Saduga \& Mihca. Regas is a 25 year-old senior accountant in the same firm. Although it is acceptable for peers to date, the firm does not permit two members of different ranks within the firm to do so. A partner should not date a senior in the firm any more than a senior should date a junior staff accountant. If such dating eventually leads to marriage, then one of the two must resign because of the conflicts of interest. Both Giles and Regas know the firm's policy on dating, and they have tried to be discreet about their relationship because they don't want to raise any suspicions. While most of the staff seem to know about Glles and Regas, it is not common knowledge among the partners that the two of them are dating. Perhaps that is why Regas was assigned to work on the audit of CAA Industries for a second year, even though Giles is the supervising partner on the engagement. As the audit progresses, it becomes clear to the junior staff members that Giles and Regas are spending personal time together during the workday. On one occasion, they were observed leaving for lunch together. Regas did not return to the client's office until three hours later. On another occasion, Regas seemed distracted from her work, and later that day, she received a dozen roses from Giles. A friend of Regas who knew about the relationship. Ruth Revilo, became concerned when she happened to see the flowers and a card that accompanied them. The card was signed, "Love, Poochie," Regas had once told Revilo that it was the nickname that Regas gave to Giles. Revilo pulls Regas aside at the end of the day and says, "We have to talk." "What is it?" Regas asks. "I know the flowers are from Giles," Revilo says. "Are you crazy?" "It's none of your business," Regas responds. Revilo goes on to explain that others on the audit engagement team are aware of the relationship between the two. Revilo cautions Regas about jeopardizing her future with the firm by getting involved in a serious dating relationship with someone of a higher rank. Regas does not respond to this comment. Instead, she admits to being distracted lately Revilo goes on to explain that others on the audit engagement team are aware of the relationship between the two. Revilo cautions Regas about jeopardizing her future with the firm by getting involved in a serious dating relationship with someone of a higher rank. Regas does not respond to this comment. Instead, she admits to being distracted lately because of an argument that she had with Giles. It all started when Regas had suggested to Giles that it might be best if they did not go out during the workweek because she was having a hard time getting to work on time. Gles was upset at the suggestion and called her ungrateful. He said, "I've put everything on the line for you. There's no turning back for me." She points out to Revilo that the flowers are Glles' way of saying he is sorry for some of the comments he had made about her. Regas promises to talk to Giles and thanks Revilo for her concern. That same day. Regas telephones Glles and tells him she wants to put aside her personal relationship with him until the CAA audit is complete in two weeks. She suggests that, at the end of the two-week period, they get together and thoroughly examine the possible implications of their continued relationship. Giles reluctantly agrees, but he conditions his acceptance on having a "farewell" dinner at their favorite restaurant. Regas agrees to the dinner. Giles and Regas have dinner that Saturday night. As luck would have it, the controller of CAA Industries, Mark Sax, is at the restaurant with his wife. Sax is startled when he sees Gles and Regas together. He wonders about the possible seriousness of their relationship, while reflecting on the recent progress billings of the accounting firm. Sax believes that the number of hours billed is out of line with work of a similar nature and the fee estimate. He had planned to discuss the matter with Herb Morris, the managing partner of the firm. He decides to call Morris on Monday morning. "Herb, you son of a gun, it's Mark Sax:" "Mark. How goes the audit?" "That's why l'm calling." Sax responds. "Can we meet to discuss a few items? "Sure," Morris replies, "Just name the time and place." "How about first thing tomorrow morning?" asks Sax. delationship Gies reluctantly agrees, but he conditions his acceptance on having a "farewell" dinner at their favorite restaurant. Regas agrees to the dinner. Glles and Regas have dinner that Saturday night. As luck would have it, the controller of CAA Industries, Mark Sax, is at the restaurant with his wife. Sax is startled when he sees Giles and Regas together. He wonders about the possible seriousness of their relationship, while reflecting on the recent progress billings of the accounting firm. Sax believes that the number of hours billed is out of line with work of a similar nature and the fee estimate. He had planned to discuss the matter with Herb Morris, the managing partner of the firm. He decides to call Morris on Monday morning. "Herb, you son of a gun, it's Mark Sax." "Mark. How goes the audit?" "That's why I'm calling." Sax responds. "Can we meet to discuss a few items?" "Sure," Morris replies. "Just name the time and place." "How about first thing tomorrow morning?" asks Sax. "I'll be in your office at 8:00 a.m." says Morris. "Better make it at 7:00 a.m., Herb, before your auditors arrive." Sax and Morris meet to discuss Sax's concerns about seeing Giles and Regas at the restaurant and the possibility thattheir relationship is negatively affecting audit efficiency. Morris asks whether any other incidents have occurred to make him suspicious about the billings. Sax says that he is only aware of this one instance, although he sensed some apprehension on the part of Regas last week when they discussed why it was taking so long to get the audit recommendations for adjusting entries. Morris listens attentively until Sax finishes and then asks him to be patient while h sets up a meeting to discuss the situation with Giles. Morris promises to get back to Sax by the end of the week. In respect to Herb Morris as a Managing Parther, Giles and Regas' failute to adhere fo firm rules most closely breaks which of the Josephsori Plars? Multale Croice Trustworthiness Gructehip Pespect Aesponsiblity Ed Giles and Susan Regas have never been happler than during the past four months since they have been seeing each other. Giles is a 35-year-old CPA and a partner in the medium-sized accounting firm of Saduga \& Mihca. Regas is a 25 year-old senior accountant in the same firm. Although it is acceptable for peers to date, the firm does not permit two members of different ranks within the firm to do so. A partner should not date a senior in the firm any more than a senior should date a junior staff accountant. If such dating eventually leads to marriage, then one of the two must resign because of the conflicts of interest. Both Giles and Regas know the firm's policy on dating, and they have tried to be discreet about their relationship because they don't want to raise any suspicions. While most of the staff seem to know about Glles and Regas, it is not common knowledge among the partners that the two of them are dating. Perhaps that is why Regas was assigned to work on the audit of CAA Industries for a second year, even though Giles is the supervising partner on the engagement. As the audit progresses, it becomes clear to the junior staff members that Giles and Regas are spending personal time together during the workday. On one occasion, they were observed leaving for lunch together. Regas did not return to the client's office until three hours later. On another occasion, Regas seemed distracted from her work, and later that day, she received a dozen roses from Giles. A friend of Regas who knew about the relationship. Ruth Revilo, became concerned when she happened to see the flowers and a card that accompanied them. The card was signed, "Love, Poochie," Regas had once told Revilo that it was the nickname that Regas gave to Giles. Revilo pulls Regas aside at the end of the day and says, "We have to talk." "What is it?" Regas asks. "I know the flowers are from Giles," Revilo says. "Are you crazy?" "It's none of your business," Regas responds. Revilo goes on to explain that others on the audit engagement team are aware of the relationship between the two. Revilo cautions Regas about jeopardizing her future with the firm by getting involved in a serious dating relationship with someone of a higher rank. Regas does not respond to this comment. Instead, she admits to being distracted lately Revilo goes on to explain that others on the audit engagement team are aware of the relationship between the two. Revilo cautions Regas about jeopardizing her future with the firm by getting involved in a serious dating relationship with someone of a higher rank. Regas does not respond to this comment. Instead, she admits to being distracted lately because of an argument that she had with Giles. It all started when Regas had suggested to Giles that it might be best if they did not go out during the workweek because she was having a hard time getting to work on time. Gles was upset at the suggestion and called her ungrateful. He said, "I've put everything on the line for you. There's no turning back for me." She points out to Revilo that the flowers are Glles' way of saying he is sorry for some of the comments he had made about her. Regas promises to talk to Giles and thanks Revilo for her concern. That same day. Regas telephones Glles and tells him she wants to put aside her personal relationship with him until the CAA audit is complete in two weeks. She suggests that, at the end of the two-week period, they get together and thoroughly examine the possible implications of their continued relationship. Giles reluctantly agrees, but he conditions his acceptance on having a "farewell" dinner at their favorite restaurant. Regas agrees to the dinner. Giles and Regas have dinner that Saturday night. As luck would have it, the controller of CAA Industries, Mark Sax, is at the restaurant with his wife. Sax is startled when he sees Gles and Regas together. He wonders about the possible seriousness of their relationship, while reflecting on the recent progress billings of the accounting firm. Sax believes that the number of hours billed is out of line with work of a similar nature and the fee estimate. He had planned to discuss the matter with Herb Morris, the managing partner of the firm. He decides to call Morris on Monday morning. "Herb, you son of a gun, it's Mark Sax:" "Mark. How goes the audit?" "That's why l'm calling." Sax responds. "Can we meet to discuss a few items? "Sure," Morris replies, "Just name the time and place." "How about first thing tomorrow morning?" asks Sax. delationship Gies reluctantly agrees, but he conditions his acceptance on having a "farewell" dinner at their favorite restaurant. Regas agrees to the dinner. Glles and Regas have dinner that Saturday night. As luck would have it, the controller of CAA Industries, Mark Sax, is at the restaurant with his wife. Sax is startled when he sees Giles and Regas together. He wonders about the possible seriousness of their relationship, while reflecting on the recent progress billings of the accounting firm. Sax believes that the number of hours billed is out of line with work of a similar nature and the fee estimate. He had planned to discuss the matter with Herb Morris, the managing partner of the firm. He decides to call Morris on Monday morning. "Herb, you son of a gun, it's Mark Sax." "Mark. How goes the audit?" "That's why I'm calling." Sax responds. "Can we meet to discuss a few items?" "Sure," Morris replies. "Just name the time and place." "How about first thing tomorrow morning?" asks Sax. "I'll be in your office at 8:00 a.m." says Morris. "Better make it at 7:00 a.m., Herb, before your auditors arrive." Sax and Morris meet to discuss Sax's concerns about seeing Giles and Regas at the restaurant and the possibility thattheir relationship is negatively affecting audit efficiency. Morris asks whether any other incidents have occurred to make him suspicious about the billings. Sax says that he is only aware of this one instance, although he sensed some apprehension on the part of Regas last week when they discussed why it was taking so long to get the audit recommendations for adjusting entries. Morris listens attentively until Sax finishes and then asks him to be patient while h sets up a meeting to discuss the situation with Giles. Morris promises to get back to Sax by the end of the week. In respect to Herb Morris as a Managing Parther, Giles and Regas' failute to adhere fo firm rules most closely breaks which of the Josephsori Plars? Multale Croice Trustworthiness Gructehip Pespect Aesponsiblity